Japan's largest investment bank Nomura plans to establish an institution-focused crypto subsidiary.

Japan’s largest investment bank Nomura plans to establish an institution-focused crypto subsidiary.



Days after launching its first over-the-counter bitcoin derivatives for institutional clients, Japan’s largest investment bank, Nomura, doubled down on its crypto-based services by launching a new cryptocurrency unit for institutional investors.

The launch of a crypto unit from Nomura

The giant Japanese financial services company Nomura is reportedly preparing to launch a cryptocurrency subsidiary. According to Financial Timesthe new company aims to diversify Nomura’s institutional clients into decentralized finance, cryptocurrencies and non-fungible tokens (NFT).

The company plans to combine multiple digital asset services under a single wholly-owned subsidiary and will employ around 100 people by the end of 2023. Through the new company, Nomura will compete with other global banks that already offer bitcoin-based products and services, stablecoins and other digital assets.

The report also shows that Nomura executives will lead the new branch, noting that most new employees will be recruited from outside and 15 current employees of the company will be transferred to the new division. The bank’s wholesale digital director, jez Mohideenwill run the cryptography unit.

See also: SEC issues new regulations on cryptocurrency issuance and trading in Nigeria.

Dedicated for institutional investors

A Nomura executive expressed urgency over its recent foray into crypto services suitable for institutionsadding that the inflationary environment is a key factor in accelerating the company’s new growth.

“Any asset class today that has discounted cash flows is under enormous stress in an inflationary environment. But I think that… many managers will be looking and thinking about potentially allocating to blockchain technology and blockchain opportunities.

Rig Karkhanisa Nomura executive, views this decision as a response to “increasing customer demand”. The bank expects the crypto industry to mature and become better regulated over time, which will make it more attractive to institutional clients.

In recent years, other global financial institutions such as Goldman Sachs, Citigroup and bank of New York Mellon have ventured into the cryptocurrency market. As a reminder, the trading branch crypto of DRW, cumberlandperformed last week the first bitcoin futures and options (BTC) by Nomura on CMEbased in Chicago. Furthermore, Nomura’s unveiling coincided with a sharp decline in the value of some of the world’s major cryptocurrencies, raising concerns in the crypto market.

Bonus: ECB member says development of a digital euro will start in 2023.

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